Value propositions in accordance with service-dominant logic and service science: New insights into the Zhongguancun electrics market

Abstract

One key fundamental premise in service-dominant logic is that the enterprise cannot deliver value, but only offer value proposition. That is, business enterprises, or more generally, any actor, cannot deliver value to other actors; they can only offer a value proposition for (usually mutually) benefit. Thus compelling value propositions can establish connections and relationships among service systems, and can be developed for gaining competitive advantages. However, applied research to date suggests that relatively little is known about the related discussions carried out for and against the context of IT and electronics market such as Chinese Zhongguancun market viewed through the lens of service-dominant logic and service science. In this article, drawing on the extent service literature on the concept of value proposition and through the lens of service dominant logic and service science, we explore and identify the focal service network initiator and the two main participating actors and the three primary pillars of the reciprocal value proposition, we further propose a conceptual value proposition model for deeply understanding of reciprocal value proposition within and among the multiple service network actors engaging with one another through the interrelated three enablers by service dialogical communications. And then, we examine its appropriateness through the two-selected case analysis in the context of Chinese electronics market such as Zhongguancun market, highlight how the three main stakeholders by joint efforts, co create reciprocal value propositions for their benefits, collectively and/or respectively, in accordance with service dominant logic and service science. Finally, we conclude with gaining the new insights into value propositions, and suggest managerial implications and identify areas for future research.